The SONET standard defines a field set of criteria encompassing data rates and formats, network segments, network elements and the other factors important for ensuring end-to-end performance of an optical communication network. The current SONET system relies on individual bits in the SONET frame headers to extract performance monitoring indicators such as loss of frame (LOF). Such extraction is relatively easy in systems in which the regeneration of the optical signal is periodically converted to an electrical signal for amplification and then regenerated as an optical signal. However in all-optical regeneration systems, individual bits are no longer available at section or line network elements, such as all-optical regenerators or all-optical cross-connects. This absence of individual bits complicates the problem of performance monitoring of all-optical systems. The present invention seeks an improved technique for performance monitoring of optical communication systems. Such monitoring is important to insure healthy network operation.